An Analysis of the Business Strategy and Model

MAKE MY TRIP : COMPANY AND PRODUCTS

Offers competitively prices travel products – real time booking capability

Entire facility of travel services through internet

In addition to airline tickets, MMT offers hotel bookings, holiday packages, car rentals, trains and cruises for Indian and International destinations.

Allows online booking and confirmation, online web chat and toll free number

Offers travel insurance, access to business lounges and valuable shopping discount booklets

Weekend breaks: Offers great opportunity with thousands of options for short stay holidays at all price points.

B2B services. Local agents around the world able to access the above products through its

extranet, IndiaAhoy.com Provides value added services

like free drop and pickup for clients

CUSTOMER SEGMENT

INDIAN MARKET

INTERNATIONAL TRAVELER

INBOUND TRAVELER

OUTBOUND TRAVELER

BUSINESS PURPOSES

LEISURE AND TRAVEL VISITING FAMILY

OTHER PURPOSES LIKE PILGRIMEGE

ETC.

DOMESTIC TRAVELER

MARKET PENETRATION STRATEGY Low Cost Carriers (LCCs) had made air travel cheaper Young India – more disposable incomes : increase in average

household spending by 5.3% between 1994-2004 Move of airlines to e-ticketing Decision to allow private airlines to travel on international

routes Decision by Aviation industry to modernize 8o airports Increased credit card usage as most popular mode of

payment (70%). The number of credit cards in use had increased from 26.9 million in December 31, 2003 to 43.3 million a year later. During 2003-04, 185.5 million credit card transactions were effected, amounting to Rs. 358,700 million

Increased Air Capacity

BUSINESS MODEL There were three enabling components: technology, people and

process, and supplier relations. Technology was identified as a cornerstone. MMT had already

developed proprietary technology which would help it link all supplier sites to check the inventory and compare prices

The booking engine would also enable customers to customize the booking of their flight and hotel packages to maximize savings.

No selling of advertisement space on the website to avoid distraction. Company products to generate revenue

Employees having domain-specific skills in order to help MMT develop and offer suitable products and services for the travel consumer.

BUSINESS MODEL (contd)

STRATEGIC VIEW AND CHOICES BY MMT

Business strategy very closely linked to studying consumer behavior of Indians, which tried to address the following: Short lead-time for booking holidays (3-6 weeks) Preference for pre-planned travel Attitude towards travel: giving importance to status Specific needs (e.g., dietary) because of their social/ religious background No specific language problems: many Indians spoke English Preference for familiar Indian food Preference for travel agents or tour operators for buying travel products

even though they offered limited choices. MMT realized that there was a need to offer a unique service that would help travellers to make their own decision regarding travel (and minimize the dependence on travel agents).

THE VIRTUOUS CYCLE OF TRAVEL MARKET

ENDURING BENEFITS

STRONG ENTRENCHMENT

IN THE MIND SPACE

VISITS TO SITE AND

PURCHASINGSATISFACTION

REPEAT VISITS AND

PURCHASE

UNIQUE BUSINESS PROPOSITIONMajor target customer :metro male in the age group of 24-

44 years, married with a monthly household income of over Rs. 30,000 in families which were Internet-savvy with usage beyond email, transacted on the Internet before, deal hunters, and early adopters (those were inclined to try new things).

In India, most of the consumers were deal hunters and therefore MMT realized that offering the best possible price to the consumer would certainly help not only lure but also retain customers. For that purpose, MMT had planned the unbeatable proposition of giving consumers the lowest possible price in the market.

Launch Plan

MMT wanted to achieve the following objectivesthrough the launch campaign:• Communicate that MMT offers online one-stop-

shop solution to travel consumers• Build excitement through every customer contact• Communicate a strong proposition and deliver

consistently on the promise• Build empathy via relevance.

Campaign Design• The campaign focused on the lowest airfare guarantee to push trials. The

tallest claim in the market — “If you find a lower fare we pay the difference” — was designed to serve the purpose of grabbing the

attention.

Advertisement Budget

• Money: Rs. 30 million on advertising and marketing activities during 3 months launch phase

Sales

TVWebPrintOutdoorBTLPrint

Viral Campaigns• The primary goal of the viral campaigns was to promote the lowest airfare

guarantee offered by MMT and generate excitement in the market.• The campaign was aimed at creating a new breed of air travellers. A manifestation

of this trend was conveyed through another message to the target audience ,“Wish, Click, and Go.” Two virals were created to build the MMT brand and to entice travellers to make use of the low airfares

Sita Haran Viral

The first of the viral series, Sita Haran, was centred on the Ramayan where Sita, wife of Rama, was kidnapped by Ravana. Rama killed Ravana to rescue Sita and the day is celebrated as Dussera in India to mark the victory of good over evil. In the viral, however, Ravana, while on a mission to hoodwink and kidnap Sita, came across the exciting offer and, unable to resist it, rushed off to claim it. This creative was designed to capture the excitement in the market during Dussera.

The Moving Train ViralOne of the most interesting and exciting virals of the series was “The Moving Train.” This was designed to convey the message that travel by airline was comparativelycheaper. This film bore allusions to the popular Bollywood blockbuster movie Sholay. The dacoits chase a train on horseback accompanied by the characteristic action movie soundtrack. After a long chase, they finally manage to board the train and threaten the passengers to stay still. A sudden calm greets the announcement, and realization seems to dawn on one of the dacoits. His equally perplexed henchman moans, ”There is noone in the train!“ That very moment the hapless gang sees a plane flying by full of happy passengers. Even as the dacoits stare at the plane, one of them asks, “Kya abhawai jahaj ko lootiyega ka?“ (Will you now loot the airplane?)

Analysis of MMT Strategy

Media Selection and Advertisement

Media Selection

Print Media InternetTelevision Outdoor

The media objective was to create a 360-degree loop to reach the target customer through all feasible media options:

Analysis of Media Campaign of MMT

Percentage Share Adopted by MMTTV – 40 %Internet -30%Outdoor – 5%Print-5%PR – 15%

Print Media Print Strategy Adopted

1) Ads placed at bottom signifying rock bottom prices

2) City relevant offers

5 % spending

Media Reach ComparisonStats by Media research Users Council (MRUC)1

1. http://www.afaqs.com/perl/media/story.html?sid=26984_IRS2010Q1report:Printretains%20itsreach;TVInternetgrows;Radiodeclines

Trust & Marketing Medium

Cheap Advertising to a larger population

Target Audience Male Age group 24-44

Internet penetration in India for travel sites ( Data as per Aug 2013)

Internet Advertising in India

The India e-retail report,2012 states that :- The online advertising market, which comprises

search, display, rich media, video and classifieds is currently pegged at about Rs 1,850 crore (USD 410 million)

- It is about seven per cent of the overall advertising pie

- This is less than the global average of 15.5 per cent- Advertisers in India are now spending 5-10 per cent

of their advertising budgets on the Internet.

78%

19%

3%

Online Market Share by Channel - 2005

Supplier Website

Traditional Travel Agents

OTAs

Indian Railways Makemytrip Yatra Online Expedia Inc Cleartrip0

1

2

3

4

5

6

7

8

97.75

3.4

1.93 1.641.19

Top visited sites online

Top visited sites online

April 2010

MMT

Yatra

Cleartrip

Travelguru

0 2 4 6 8 10 12 14 16 18 20

18

8

5

2

Revenues of Major OTAs (2008)

2004 2005 2006 2007-080

2

4

6

8

10

12

4

6 6

3

1

4

5

2

10

11

5

Number of Domestic Airlines

Number of domestic airlinesNetwork CarriersLow Cost Carriers

Television• High frequency with base rate of 40 % in all markets• High reach mass channels were not chosen• Commercial length: 20 sec• 60 % of total time was evening prime time and 40% was RODP on

weekends• Global TV ad expenditures grew 4.2 percent on a year-over-year basis for

the first half of 2013, accounting for 57.6 percent of total ad spend.

Changes in Target Group

• In addition to the target group of young urban male of age group 24-44 years MMT could also focus on 44-65 years corporate population, because:

• They travel business class• Frequency of their travel is high• They have more brand loyalty • They have more Outbound travel frequency• Less Advertising cost as compared to target audience

for urban youth• Help Achieve Volumes more quickly

Advertising Model

• Hybrid Model

Changes in Advertising Campaign• Radio: MMT did not include radio as an advertising tool. Especially in metros

like Delhi, Mumbai and Kolkata, market penetration through channels like 94.3 and 92.7 will be most effective

• Television: Include MTV and Channel V along with UTV Bindass as campaign partner. Specifically focussing on Shows like Roadies and Launch Pad.

• Mascot: Sequence of Ads with a Mascot enhances the brand loyalty and brand association.

• Print: Magazines which are much in demand for Urban Youth and Niche magazines which corporate bosses prefer reading could be a good source of Marketing.

• Outdoor: In addition to Airport, Luxury hotels can also be included for Outdoor Advertising.

• Internet: Viral Campaigning over Facebook and Twitter and other Websites which receive high traffic from the target base.

• Travel partner with Corporates: MMT could go about collaborating with big corporates like ABG, ITC, and Microsoft etc. and become their travel partner.

• Collaborating with sports events/other major events: MMT can also become travel partner for major sport, film and other events e.g. Official travel partner for IPL, IIFA Awards etc.

• Flash mobs : There is no better way for viral campaigning than on airports and malls.• Free Food coupons for a day for every traveller on Make My Trip Day.• Make my Trip goodies to be distributed to 100 lucky customers on a daily as well as to

the loyal and important customers, this will increase brand loyalty• Lifetime Make my trip card on lines of Club Mahindra.• Collaborations with Banks• Personalized Travel Options• Tie Ups with Holiday Destinations e.g.. Trekking,Bunjey Jumping etc.• Expanding the usage of Travel Points and allowing customers to use it for online

shopping.• Developing a Mobile App.